Optical Cable Corporation Reports Fourth Quarter And Fiscal Year 2013 Financial Results

ROANOKE, Va., Dec. 19, 2013 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC^®" or the "Company") today announced financial results for its fourth quarter and fiscal year ended October 31, 2013.

OCC achieved consolidated net sales of $75.3 million during fiscal year 2013—the second highest annual net sales in OCC's history.

Fourth Quarter 2013 Financial Results

Net sales for the fourth quarter of fiscal year 2013 were $19.2 million.  Net sales decreased 13.1% compared to $22.1 million for the fourth quarter of fiscal year 2012, primarily as a result of orders for two customers totaling approximately $3.9 million in the fourth quarter of fiscal 2012 that did not recur at the same level in the fourth quarter of fiscal 2013. 

Gross profit margin, or gross profit as a percentage of net sales, was 34.3% for the fourth quarter of fiscal year 2013, compared to 35.0% for the fourth quarter of fiscal year 2012. Gross profit decreased 15.0% to $6.6 million in the fourth quarter of fiscal year 2013, compared to $7.8 million in the fourth quarter of fiscal 2012. 

OCC recorded a net loss attributable to the Company of $91,000, or $0.02 per basic and diluted share, for the fourth quarter of fiscal year 2013, compared to net income of $435,000, or $0.07 per basic and diluted share, for the fourth quarter of fiscal year 2012. 

Fiscal Year 2013 Financial Results

Consolidated net sales for fiscal 2013 were $75.3 million—the second highest annual net sales in OCC's history.  Net sales decreased 9.9% compared to $83.5 million for fiscal 2012, primarily as a result of orders for two customers totaling approximately $14.9 million in fiscal 2012 that did not recur at the same level in fiscal 2013.  Excluding the impact of these two customers, total net sales during fiscal 2013 would have been approximately the same as net sales in fiscal 2012.

The Company achieved an increase in net sales during fiscal year 2013 in its specialty markets, compared to fiscal year 2012, but this increase was offset by decreases in net sales in its commercial markets. 

Gross profit margin was 34.4% for fiscal year 2013, compared to 37.8% for fiscal year 2012.  Gross profit was $25.9 million in fiscal year 2013, a 17.9% decrease from gross profit of $31.6 million in fiscal 2012.  Gross profit in fiscal year 2013 was negatively impacted by lower net sales, as certain fixed manufacturing costs were spread over lower sales volumes.  Additionally, the Company experienced an increase in certain production costs at its Roanoke facility in order to further expand the breadth of its production capabilities to support growth, as well as to accommodate potential higher levels of production from anticipated sales opportunities.

OCC recorded a net loss attributable to the Company of $43,000, or $0.01 per basic and diluted share, for fiscal year 2013, compared to net income attributable to the Company of $2.7 million, or $0.43 per basic and diluted share, for fiscal year 2012.

Management's Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, "OCC's financial results for fiscal year 2013 were not as strong as we hoped after record-setting results achieved during the prior fiscal year.  However, we do not believe this fiscal year's results reflect our underlying market and financial strength.  We operate in markets that can be volatile, creating sales variations due to timing of projects and changes in individual markets. With this in mind, OCC focuses on long-term strategy and prospects. During fiscal year 2013, OCC increased investments to add production capabilities and to develop new products and technologies, based on our long-term strategic initiatives.  We are confident that our proven long-term strategies, coupled with our strong operating leverage, will provide exceptional opportunity for increased shareholder value."

Mr. Wilkin added, "During fiscal year 2013, OCC maintained its financial strength, generating $3.5 million in net cash provided by operating activities and returning a total of $1.1 million to shareholders by declaring dividends and repurchasing OCC's common stock.  Additionally, we increased our quarterly dividend rate by approximately 33%, and the Board of Directors remains committed to continuing to return capital to shareholders.  Looking ahead to 2014, we are confident that our strategic plan and the steps we are taking will continue to position OCC to capitalize on growth opportunities and deliver enhanced shareholder value."  

Conference Call Information

As previously announced, OCC will host a conference call today, December 19, 2013, at 1:00 p.m. Eastern Time.  Individuals wishing to participate in the conference call should call (888) 868-9083 or (973) 935-8512.  For interested individuals unable to join the call, a replay will be available through December 26, 2013 by dialing (855) 859-2056 or (404) 537-3406, pass code 23156256.  The call will also be broadcast live over the Internet and can be accessed by visiting the investor relations section of the Company's website at www.occfiber.com.

Company Information

Optical Cable Corporation ("OCC^®") is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise market (or non-carrier market), offering an integrated suite of high quality, warranted products which operate as a system solution or seamlessly integrate with other providers' offerings.  OCC's product offerings include designs for uses ranging from commercial, enterprise network, datacenter, wireless, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical, wireless carrier and broadcast applications.  OCC products include fiber optic and copper cabling, fiber optic and copper connectors, specialty fiber optic and copper connectors, fiber optic and copper patch cords, pre-terminated fiber optic and copper cable assemblies, racks, cabinets, datacom enclosures, fiber optic and copper patch panels, face plates, multi-media boxes, wireless distributed antenna systems, fiber optic reels and accessories and other cable and connectivity management accessories.  OCC products are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics. 

OCC^® is internationally recognized for pioneering the design and production of fiber optic cables for the most demanding military field applications, as well as of fiber optic cables suitable for both indoor and outdoor use, and creating a broad product offering built on the evolution of these fundamental technologies.  OCC also is internationally recognized for its role in establishing copper connectivity data communications standards, through its innovative and patented technologies.   

Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices, manufacturing and warehouse facilities located in each of Roanoke, Virginia, near Asheville, North Carolina and near Dallas, Texas.  OCC's facilities are ISO 9001:2008 registered, and OCC's Roanoke and Dallas facilities are MIL-STD-790F certified.

Optical Cable Corporation, OCC^®, Procyon^®, Superior Modular Products, SMP Data Communications, Applied Optical Systems, and associated logos are trademarks of Optical Cable Corporation.

Further information about OCC^® is available at www.occfiber.com.

FORWARD-LOOKING INFORMATION

This news release by Optical Cable Corporation and its subsidiaries (collectively, the "Company" or "OCC") may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations, and such known and unknown variables, uncertainties, contingencies and risks may also adversely affect Optical Cable Corporation and its subsidiaries, the Company's future results of operations and future financial condition, and/or the future equity value of the Company.  A partial list of such variables, uncertainties, contingencies and risks that could cause or contribute to such differences from our expectations or that could otherwise adversely affect Optical Cable Corporation and its subsidiaries is set forth in Optical Cable Corporation's quarterly and annual reports filed with the Securities and Exchange Commission ("SEC") under the heading "Forward-Looking Information."  OCC's quarterly and annual reports are available to the public on the SEC's website at http://www.sec.gov.  In providing forward-looking information, the Company expressly disclaims any obligation to update this information, whether as a result of new information, future events or otherwise except as required by applicable laws and regulations. 

(Financial Tables Follow)

SOURCE Optical Cable Corporation